There are few experiences in life as dreaded as the audit. Taxpayers everywhere shudder at the mere thought of their tax return triggering the mysteriously unpredictable IRS red flag.  If you’re wondering what impels the IRS to conduct an audit, you’re not alone.

“The IRS has a formula, and it’s a secret formula,” said Eric Toder, senior fellow at the Tax Policy Center. “They have developed statistical associations between noncompliance and the kinds of things you put on your tax returns.”

Taxes are On Topic in March at FOXBusiness.com. From tips on how to save money when you file to how to avoid an audit, check back throughout the month to find out what you need to know.

Millions of dollars are spent each year on tax preparation in the hopes of creating a return that will be casually ignored, but there’s still no guarantee that you won’t be randomly chosen for inspection by an IRS henchman.

“There’s no such thing as a guarantee that you will not be audited," said Wilma Hayes, a tax professional and professional adviser with H&R Block. "Even for people who don’t have anything blatantly suspicious on the return. There is what the IRS calls 'random audits.' “But there are some mistakes you can make that can trigger an audit.”

While it’s debatable how much these common mistakes or “triggers” actually increase your risk of audit, odds are that if you avoid the following tax traps, you could decrease your chances of getting flagged.  Here are a few tips tax experts recommend you avoid when filing your return.

Watch out for the child tax credit
One of the more common mistakes that set off the IRS sensors last year occurred when two parents filed separately and both claimed the same child, said Rich Preece, a spokesperson from Turbo Tax.  

"The reason why so many people got audited last year claiming child tax credit is because now many parents don’t live together, and they file separately, but both parents claim the child as a tax credit,” Preece said. “The second time that Social Security number pops up on the IRS’s radar, that second parent filing will be audited.”

Preece said because this is a common mistake, Turbo Tax software now automatically reminds anyone claiming a child on their return to be sure they’re the only parent entering that child’s Social Security number.

Be careful when claiming your home office
Although claiming your home office expense is a legitimate deduction, Hayes warns that you have to be careful to only use that space for work.

“We don’t want to scare people from taking a legitimate deduction, but if you’re using your home office to telecommute every day then a certain percentage of the home in that area has to be dedicated and solely used for the purpose of the home office,” Hayes said. “It’s literally an office set up in one room--you should not have a television in there.”  

Rental properties vs. vacation homes
A common mistake that many people make is claiming what the IRS considers a vacation home as a rental property.

“A lot of people don’t realize if you stayed in that rental property for more than 14 nights or a combined total of 10% or more of the total time it was rented, the IRS considers it a vacation home and there’s an entirely different set of deductions. Maintenance isn’t allowed to be claimed,” Preece said.

That’s not to say you should be afraid to claim your rental properties; just be careful to document that you have not been using your rental property as a vacation home, in case the IRS comes calling.

Mistakes with moving expense deductions
Another potential mishap that Preece said TurboTax watches for is claimed moving expenses.  According to Preece, in order to qualify for a deduction, you have to be moving more than 50 miles away and it has to be at the request of your employer.  On the off chance that you are audited, you’ll need proof of your employer’s request in writing.

Be extra cautious if you’re self-employed
It’s no secret that the self-employed are typically audited more than salaried employees.  Last year, the IRS audited 2.1% of small businesses earning between $25,000-$100,000, and those earning below $25,000 and above $100,000 were audited at a rate of 3.8% and 3.9%, respectively.  Only 1% of individual returns were audited last year, so it’s clear that the IRS pays special attention to people who own their own business.  

“The IRS looks closely at people who are in business for themselves. Those who need to keep separate bank accounts and credit cards for business and personal expenses,” Hayes, of H&R Block, said. “These people need to keep a diary if they’re taking clients out and need to write in that diary when and why they took clients out.  Sometimes a diary can substitute for receipts, but there has to be a pattern that the auditor will see at the audit as the client is flipping through the diary to justify the expenses.”

Claiming a casualty loss or theft
Another tax return trip-up comes when claiming a large casualty loss or theft, Hayes said.  If you had insurance on an item that was lost or stolen, it is likely that during the time you owned the item its fair market value decreased. If you collected insurance for the amount you originally insured the item for, the IRS may consider you to have made a profit on something that was actually a loss.  Thus, claiming that item as a loss when the insurance company reimbursed you for the full amount you paid is probably not a good idea.
 
Watch out for when you file
Although there are always theories about which time of year is the best time to file your taxes, Hayes said she has seen less audits among people filing in October after an automatic extension. There’s no scientific proof to back it up, but filing a little late might be something you would want to consider if you’re really paranoid about being audited.

“What I’ve noticed is that somewhere around the November time-frame, the IRS decreases the number of audits because it’s changing over its system from the previous year to the coming year. But there are no guarantees--it’s just a pattern I’ve seen,” she said.

Ultimately, there’s no way to guarantee that you won’t be audited.  This year, the IRS plans to randomly select 13,000 people who file perfectly normal returns for audit.  If you’re one of the unlucky chosen ones, remember to keep documentation to back up all of your deductions and relax.  There’s nothing to fear as long as you can support all your claims. The IRS isn’t really out to get you, it’s just trying to enforce its own rules.

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